Investopedia: Clouds Good And Bad For Red Hat

Another quarter has rolled by, and cloud is still a hot topic in the tech world. Recently, though, some of that chatter has turned more negative. With Amazon's (Nasdaq:AMZN) cloud servers apparently being used by the hackers that targeted Sony's (NYSE:SNE) PlayStation network, there's a fresh reminder of some of the potential vulnerabilities to cloud architecture.



How much that matters to Red Hat (NYSE:RHT) right now is not so clear. Red Hat is still in the early days of its evolution into a cloud provider (middleware and virtualization, alongside its enterprise Linux) and even if cloud adoption slows a bit in the short term, it likely does not impact the long-term picture at Red Hat for a while. That said, Red Hat still has some of its own issues to address.

Yet Another Strong Performance at Red Hat
Pardon the pun, but good quarterly reports are becoming a little old hat for this name. Red Hat posted revenue growth of nearly 27% (and up about 8% sequentially), as subscription revenue rose almost 26% and training/service revenue rose more than 30%. Backing up the solid revenue number was 28% growth in billings - suggesting that momentum is still pretty solid. (For more, see Introduction To Momentum Trading.)



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